The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Residence is one of the key factors you should consider when deciding whether, or to what extent, an individualis liable to tax in the UK. From 6 April 2013, an individual’s residence status is determined using the statutory residence test (also known as the SRT).
This guidance note covers the definitions which are important for the statutory residence test and includes references to the HMRC guidance on the test in RDRM11000 onwards (which was published in RDR3 prior to August 2019).
There were a number of changes to the statutory residence test that were introduced by FA 2020 due to the coronavirus (COVID-19) pandemic. These are discussed in context below and in the other statutory residence test guidance notes, but for a discussion of all the changes introduced, see the FA 2020 ― changes to the statutory residence test [updated] news item.
The definitions are also important in deciding whether the individualqualifies for split year treatment. See the Residence ― issues on coming to the UK (2013/14 onwards) and Residence ― issues on leaving the UK (2013/14 onwards) guidance notes.
To summarise, the individualwill be:
UK resident if:
any of the automatic UK tests are met and none of the automatic overseas tests are met, or
none of the automatic UK tests are met, none of the automatic overseas tests are met but the sufficient ties test is met
UK non-resident if:
any of the automatic overseas tests are met, or
none of the automatic UK tests are met, none of the automatic overseas tests are met and the sufficient ties test is not met
Note that the conditions of the tests are modified for those who work on ships, planes or lorries. These people were known as ‘international transport workers’ under previous draft versions of the legislation, but are referred to in FA 2013, Sch 45 as people with a ‘relevant job’ on board a vehicle, aircraft or
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash dividends and Non-cash dividends
IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to
IntroductionA pension scheme that is not a registered scheme is known as an EFRBS. Since April 6 2006, the distinction between what were approved and unapproved pension schemes has been replaced with a distinction between registered and unregistered schemes.The position as it applies with effect